Did you know that if someone owes RM50,000 and they could not pay for at least 6 months, the person could be declared a bankrupt if the creditor file a petition in court? It does not matter whether this debt is because of credit card or because of a home loan you took to buy a house in Malaysia or even because of the failure of a business and thus inability to repay the business loan from the bank earlier. yeah, especially now with the COVID-19, the risks to fail is even higher. Lockdown for example meant no business at all.
In fact, an average of 16,000 Malaysians go bankrupt every year (click to read) Well, for someone who may face issues with their payment and facing that possibility of being declared a bankrupt, they may have a reprieve in the future if they could delay this possibility till then. Perhaps go and tell the creditor to give a few more months of notice?
Article in freemalaysiatoday.com De facto law minister Takiyuddin Hassan said in the Dewan Rakyat that the government will soon table amendments to Section 51 of the insolvency laws to increase the threshold of an individual to be declared bankrupt. He said, “Yes the government is concerned after Covid-19, and will table amendments to Section 51 that will increase the threshold for an individual to be declared bankrupt. I cannot announce (the details) yet. It will be tabled at this sitting.” Do click here for the full article yeah. Article in freemalaysiatoday.com
What do you think? In Singapore, someone who owes S$15,000 (RM46,000) could be declared bankrupt BUT this has been increased to S$60,000 (RM184,000) due to COVID-19 until October 2020. (click here to read) Actually, currency aside, S$15,000 can be considered very strict. It meant that this is a deterrent so that people do not simply borrow and then choose not to repay. Well, if Singapore has increased this during COVID-19 period, then perhaps it’s also apt that Malaysia may be doing something similar to help those affected by the current pandemic. Let’s see what is the final number which will be tabled since it will be done during the current sitting.
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Next suggested article: Visit homes of errant defaulters more often please